Announcement of the IX Digital Asset Industry Classification System & IX Infrastructure Crypto Index

HONG KONG SAR –
Media OutReach – 21 September 2022 – Today, IX Asia Indexes Company Limited (“IX Asia Indexes”) announced the launch of the IX Digital Asset Industry Classification System (“DAICS™”), aiming to provide the professional worldwide with a transparent and standardized classification scheme to determine sector and exposure of particular digital assets. It also serves as a tool for asset allocation and portfolio analysis for digital assets market as well as product development. DAICS™ complements IX Asia Indexes to develop their own competitive digital asset indexes and index products from a robust global standard.
DAICS™ covers both cryptocurrencies and asset-backed tokens (“ABT”), to be reviewed semi-annually at the end of June and December. On cryptocurrencies side, it is a three-tier system that groups cryptocurrencies into 5 main industries: 1) Payment, 2) Infrastructure, 3) Financial services, 4) Technology & Data and 5) Media & Entertainment. These industries are further divided into 13 industry sectors and sub-sectors to be introduced in the future. Under asset-backed tokens, there are 6 asset types and 30 branches. They are: 1) Culture, 2) Real Estate, 3) Financials, 4) Entertainment, 5) Natural Resources and 6) Green Economy. (For DAICS™ please see Appendix 1 and 2)
Initially IX Asia Indexes will only classify the top 50 cryptocurrencies in terms of market capitalization which already represent over 80% of the market share in terns of market size and volume. ABT classification work will be added in next stage when a fair population of popular asset-backed tokens are available in the market. The current asset types and branches of the ABT category is to provide a first stage according to more foreseeable industry demand. As the market further matures with more cryptocurrencies with strong use cases emerge, the Classification System may expand to include more cryptocurrencies, ABT, industries, sectors and subsectors. (For more details on the grouping of cryptocurrencies under DAICS™, please refer to Appendix 3)
In response to the common global effort to achieve net zero emission by 2030 and 2050 agenda for the 17 sustainable development goals (SDGs) by United Nations, IX Asia Indexes anticipates that more tokenisation will adopt the SDGs. Our vision is that ESG and sustainability is more than environmental impact, which also includes sustainable growth and development, good governance, better social impact and community engagement. To promote this, the DAICS™ introduces “green” labelling for cryptocurrencies that adhere to the principle of sustainability by employing energy efficient protocol or making an active effort in minimising environmental damages. Under the ABT cataegory, a “Green Economy” asset type is introduced for token that represent ownership of the projects that ahere to the United Nations 17 sustanable development goals. An index which can represent the Asia Pacific Green Economy is also under study.
To complement with the DAICS™” launch, a IX Infrastructure Crypto Index will be launched and available hourly 7×24 on the official website
https://ix-index.com/ after the third quarter end index review. A reference on the weightings among the different crypto industry sectors are shown in Appendix 4.
For further information regarding the methodology of the DAICS™, please refer the “IX Digital Asset Industry Classification System- principle and guilding methodology” available on the company website.
Appendix 1
The structure of DAICS™

Appendix 2
IX Digital Asset Industry Classification System (“DAICS™”)

Appendix 3
Classification of top 50 coins by Market Capitalisation *

Catagory

Industry

Sector

Cryptocurrencies

Cryptocurrencies

Payment:
Blockchain based money, designed for transactional purposes. This includes daily transactions usage and stablecoins.

Transaction & Payment

BTC
XRP
ADAG
LTC
CRO

XLM
XMR
BCH
BSV
ZEC

Stablecoin

USDT
USDC
BUSD

DAI
TUSD

Infrastructure:
Bedrock blockchain that facilitates the operation of other decentralised applications. This includes the creation and running of dedicated blockchain platforms, achieving interoperability between networks, increasing the amount or speed of transactions etc.

Application Development Protocol and Smart Contract

ETHG
SOL
AVAX
TRX
ETC
NEAR

FLOW
ALGOG
ICP
XTZG
HBARG
EOS

Interoperability

DOT
LINK

ATOM
QNT

Scaling

MATIC

EGLD

Supporting System

HNT

Financial services:
Tokens that provide on-chain asset management services, crypto-exchange services, funding, lending and other capital markets related services

Exchange Tokens

BNB
UNI
LEO

FTT
OKB

Lending and Borrowing

AAVE

MKR

Tech & Data:
Provision of data management and storage, and development of innovative crypto technology

File storage & Sharing

VET

FIL

Media & Entertainment:
Recreational and media services. Including content creation and distribution, advertising through crypto-asset incentive mechanisms, gaming and collectibles

Social Media

DOGE

SHIB

Streaming

THETA

Gaming

APE

AXS

Metaverse

MANA

SAND

Note: Note: G as ‘Green’ labelling for cryptocurrencies that adhere to the principles of sustainability.
Appendix 3

Catagory

Asset Type

Branch

Asset-Backed Tokens

Culture:
Real asset relating to sports, art, cultural drama, festive collectibles and design IPs etc.

Art

Sports

Festive Collectibles

Design IPs

Drama and Play IPs

Real Estate:
Assets that mainly derived its valuation from property, real estate, and land

Commercial Property

Residential Property

Governmental Property

Residential and Commercial Land

Financials:
Real financial asset including listed company shareholdings on regulated centralised exchanges and private company shareholdings; debt instruments; property trusts and derivatives that settled on regulated exchange (CeFi and DeFi).

Tokenised Securities (Company Securities, ETF)

Tokenised Debts

Tokenised REITs

Entertainment:
Ownership of the IPs assets in the area of entertainment in real world such as concert, play, shows, circus, musicals, songs, movies, events and programs, and souvenir collectibles that is derived from the above areas

Movies

Songs

Concerts

All Other Entertainment Events and Collectibles

Natural Resources:
Natural resources asset that derived directly from sea, sky, atmosphere and underground and can be classified as a commodity with standardisation such as precious metals, agricultural, energy and metals.

Precious Metals

Agricultural

Energy

Metals

Green Economy:
Ownership of Projects Asset that falls under the definition of the UN 17SDG²s, with over 80% of the income or jobs provided on these 17 initiatives.

No Poverty & Zero Hunger

Good Health and Well-Being

Quality Education

Gender Equality

Clean Water and Sanitation/Affordable And Clean Energy

Decent Work and Economic Growth/ Industry, Innovation, and Infrastructure/ Partnerships for the Goals

Reduced inequalities/ Peace, Justice and Strong Institutions

Sustainable Cities and Communities/Responsible Consumption and Production

Climate Action

Life Below Water & Life on Land

² United Nations 17 sustainable development goals covering 1) No Poverty 2) Zero Hunger 3) Good Health and Well-Being 4) Quality Education 5) Gender Equality 6) Clean Water and Sanitation 7) Affordable And Clean Energy 8) Decent Work and Economic Growth 9) Industry, Innovation and Infrastructure 10) Reduced inequalities 11) Sustainable Cities and Communities 12) Responsible Consumption and Production 13) Climate Action 14) Life Below Water 15) Life on Land 16) Peace, Justice and Strong Institutions and 17) Partnerships for the Goals
https://sdgs.un.org/goals
Appendix 4
Sector Weighting of the Classification System*

Industry

Weighting (%)

Payment

61.50

Infrastructure

28.45

Financial Services

7.16

Tech & Data

0.43

Media & Entertainment

2.46

*Based on 10 August 2022
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